Market commentary: European, US markets close lower

In Europe markets closed lower putting an end to this week’s winning streak with The Stoxx Europe 600 sliding almost half a percent. Leading the way down was the British oil and gas services company Amec Foster Wheeler PLC that plunged almost 25 percent after the company announced it would half its dividend pressured by the slump in oil prices.

The German benchmark managed to gain half a percent despite downcast manufacturing reports showing a drop of almost 2 percent in September and losses from VW and Allianz. Adidas managed to lead the way higher with shares closing 8.6 percent higher following better-than-expected sales growth this year after third-quarter net profit rose 10 percent.

U.K. stocks closed lower on Thursday as the pound weakened following a gloomy outlook for the British economy due to the weakness in demand coming out of emerging markets. The FTSE 100 finished down 0.8%.

The main movers in the U.K. included Morrison Supermarkets that finished almost 6 percent lower after worse than expected sales. In the green however was AstraZeneca that closed almost 3 percent higher after revenue and earnings forecasts were raised for the year after positive third quarter results.

U.S. stocks ended Thursday’s choppy session marginally lower for a second consecutive day as investors wait for the employment report due today. The main movements on The S&P 500 were coming from Energy, utilities and materials that led the decliners, while financials and consumer stocks rose modestly.

Despite modest losses, the S&P 500 has risen in excess of 12 percent from August lows. Surely the main driving force in the coming months and what Investors will also be looking out for are any hints of a rate hike or further delay by the FED. Gold prices are reflecting this anticipation as they reached their three week lows.

In single stock names Walt Disney Co posted fourth-quarter earnings that beat analysts’ estimates as profit from cable networks and motion pictures rose.

Sales gained 9.1 percent to $13.5 billion in the period ended Oct. 3. and with the launch of the new Star wars the potential to end the year on a high is in reach for the company.

This article was issued by Andrew Cassar Torregiani, Trader/Analyst at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.